a gives them a cost estimate of $14 million, including her fees. What is the annual debt service amount if the bonds are 4% for 30 years? B) The City of Boca Raton is expected to see growth of 5% in population over the next 5 years in its utility. FPL says power costs will rise 2%/yr over that period. If the City utility’s power cost is $450,000/year, what should the projected budget be in 5 year

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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 Provide the right answers for the city of Boca

A)

The City of Boca Raton has decided to borrow funds to improve the NW/SW 4th Ave roadway improvement project. Kayla gives them a cost estimate of $14 million, including her fees. What is the annual debt service amount if the bonds are 4% for 30 years?

B)

The City of Boca Raton is expected to see growth of 5% in population over the next 5 years in its utility. FPL says power costs will rise 2%/yr over that period. If the City utility’s power cost is $450,000/year, what should the projected budget be in 5 years?

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